Jazz Pharmaceuticals posts $483M loss in Q3 2026
Jazz raised 2026 revenue guidance to $4.775–$4.850 billion, while quarterly results included $754.2 million in acquired IPR&D expense.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Jazz Pharmaceuticals plc reported third-quarter 2026 revenue of $1.243 billion, up 10% year over year, and a GAAP net loss of $483.4 million; non-GAAP adjusted net loss was $250.8 million. Both loss measures included $754.2 million of acquired in-process research and development expense allocated to ABS-1230 (JZP6979) in the Actio acquisition.
The company raised full-year 2026 revenue guidance to $4.775–$4.850 billion, from $4.600–$4.750 billion. It generated $1.330 billion of cash from operations in the first nine months of 2026. Ziihera was approved and launched for first-line HER2-positive GEA, and the Actio acquisition closed in September, adding ABS-1230 to its rare epilepsy portfolio.
In the third quarter, Jazz completed a private placement of $1.25 billion aggregate principal amount of 1.875% exchangeable senior notes due 2032 and repurchased $225 million of ordinary shares using existing cash. In October, the board approved repurchases of up to $500 million with no expiration date. The company also amended and extended Term Loan B, lowering its applicable margin by 50 basis points and extending maturity by five years to May 2033.
3 points · 1 major1 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.2026 revenue guidance rose to $4.775–$4.850 billion from $4.600–$4.750 billion.
- Moderate pointThird-quarter revenue grew 10% year over year to $1.243 billion.
- Moderate pointNine-month operating cash flow reached $1.330 billion, versus $993.3 million in 2025.
Negative
- Major pointGAAP results shifted from $251.4 million income to a $483.4 million loss.
- Minor pointAdjusted results shifted from $500.7 million income to a $250.8 million loss.
Filing Explained
At September 30, Jazz reported $2.9 billion in cash and investments, $5.6 billion in long-term debt, and $885 million in undrawn revolver capacity.
Jazz’s November 2 results release updates full-year 2026 guidance: GAAP selling, general and administrative expense is projected at
The release attributes the higher GAAP expense guidance to including restructuring expenses and says the revised tax-rate range reflects acquired in-process research and development from Actio.
As of
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Total revenues: $1.243 billion
Revenue growth: 10%
GAAP net loss: -$483.4 million
+5 more
8 metrics
Total revenues
$1.243 billion
Three months ended September 30, 2026
Revenue growth
10%
Year over year in the third quarter of 2026
GAAP net loss
-$483.4 million
Three months ended September 30, 2026
Non-GAAP adjusted net loss
-$250.8 million
Three months ended September 30, 2026
Acquired in-process research and development expense
$754.2 million
Third quarter of 2026; value allocated to ABS-1230 (JZP6979) in the Actio acquisition
Full-year total revenue guidance
$4.775–$4.850 billion
Raised from $4.600–$4.750 billion
Cash from operating activities
$1.330 billion
Nine months ended September 30, 2026; $993.3 million in 2025
Share repurchase program
Up to $500 million
Approved in October 2026; aggregate purchase price excludes brokerage commissions
Key Terms
acquired in-process research and development, exchangeable senior notes, Term Loan B, PDUFA target action date, +1 more
5 terms
acquired in-process research and development financial
"acquired in-process research and development (IPR&D) expense"
Acquired in-process research and development is the unfinished scientific work and product programs a company buys from another firm as part of a deal — think of it as buying an unfinished prototype and the team working on it. Investors care because the buyer is paying for future potential that may never materialize; that payment often shows up as a large one-time cost and signals higher risk and reward tied to future products rather than current sales.
exchangeable senior notes financial
"1.875% exchangeable senior notes due 2032"
Exchangeable senior notes are loans a company issues that promise regular interest payments and have priority over other debts, but can be swapped by the holder for shares of a different company. Think of it as lending money with an option to trade the loan for someone else’s stock; investors weigh the steady income and higher repayment priority against the chance of receiving shares that dilute ownership or fluctuate in value. These features affect a company’s credit risk, potential dilution, and appeal to different investors.
Term Loan B financial
"amended and extended the company's Term Loan B"
A Term Loan B (TLB) is a large, syndicated loan made to a company that is typically sold to institutional investors rather than held by banks; think of it as a long-term mortgage from a group of investors with higher interest and smaller early payments. It matters to investors because it changes a company’s debt cost, repayment schedule and credit risk—factors that affect profit, cash flow and the market value of both the company’s equity and its traded debt.
PDUFA target action date regulatory
"The PDUFA target action date for our New Drug Application"
The PDUFA target action date is the deadline set by the U.S. Food and Drug Administration (FDA) by which it aims to decide whether to approve or reject a new drug application. This date helps investors gauge when a company’s new medication might reach the market, potentially influencing sales and revenue expectations. It acts as a key milestone signaling progress in the drug approval process.
hazard ratio medical
"overall survival (OS) hazard ratio of 0.65"
A hazard ratio is a way scientists compare the chance of something happening over time between two groups, like patients taking different medicines. If the ratio is high, it means one group is more likely to experience the event sooner or more often, which helps determine how effective a treatment is or how risky a situation might be.
Earnings Snapshot
Total revenues: $1.243 billion · Guidance included
Third quarter 2026
Total revenues
$1.243 billion
+10% year over year
GAAP net income (loss)
-$483.4 million
From $251.4 million net income
Non-GAAP adjusted net income (loss)
-$250.8 million
From $500.7 million adjusted net income
Guidance
Raised full-year 2026 total revenue guidance to $4.775–$4.850 billion from $4.600–$4.750 billion.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did JAZZ report in Q3 2026?
Jazz reported total revenues of $1.243 billion for the three months ended September 30, 2026, up 10% year over year. Product sales, net, were $1,196.5 million, while royalties and contract revenues were $46.5 million.
Why did JAZZ report a GAAP loss in Q3 2026?
Jazz recorded a GAAP net loss of $483.4 million, including $754.2 million in acquired in-process research and development expense allocated to ABS-1230 (JZP6979) in the Actio acquisition. The expense affected GAAP results by $11.32 per share and non-GAAP adjusted results by $11.03 per share.
What is JAZZ's 2026 revenue guidance?
Jazz raised full-year 2026 total revenue guidance to $4.775–$4.850 billion, compared with $4.600–$4.750 billion in guidance provided on August 3, 2026.
How did Xywav and Epidiolex sales change for JAZZ in Q3 2026?
Xywav net product sales were $482.8 million, up 12% year over year, while Epidiolex/Epidyolex net product sales were $295.4 million, down 2%. The company cited lower U.S. gross-to-net deductions in the prior-year quarter and lower wholesaler inventory build in Q3 2026 as factors affecting the Epidiolex/Epidyolex growth rate.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
JAZZ PHARMACEUTICALS PUBLIC LIMITED COMPANY
(Exact name of registrant as specified in its charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File No.) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including zip code)
011-353 -1 -634-7800
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On November 2, 2026, Jazz Pharmaceuticals plc (the “Company”) issued a press release (the “Press Release”) announcing financial results for the Company for the quarter ended September 30, 2026. A copy of the Press Release is furnished as Exhibit 99.1 to this current report.
The information in this Item 2.02 and in the Press Release furnished as Exhibit 99.1 to this current report shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained in this Item 2.02 and in the Press Release furnished as Exhibit 99.1 to this current report shall not be incorporated by reference into any filing with the U.S. Securities and Exchange Commission made by the Company whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits | ||||
| Exhibit Number | Description | ||||
| 99.1 | Press Release dated November 2, 2026. | ||||
| 104 | 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| JAZZ PHARMACEUTICALS PUBLIC LIMITED COMPANY | ||||||||
| By: | /s/ Philip L. Johnson | |||||||
| Name: | Philip L. Johnson | |||||||
| Title: | Executive Vice President and Chief Financial Officer | |||||||
Date: November 2, 2026
Exhibit 99.1
Jazz Pharmaceuticals Announces Third Quarter 2026 Financial Results
– Broad commercial execution drives record quarterly revenues of $1.2 billion (+10% YoY) –
– Company raises full year 2026 total revenue guidance –
– Ziihera® launched in HER2+ 1L mGEA –
– Xywav® revenues grew 12% YoY with 425 net patient adds in 3Q26 –
– Closed Actio acquisition, adding ABS-1230 (JZP6979) to rare epilepsy portfolio –
DUBLIN, November 2, 2026 -- Jazz Pharmaceuticals plc (Nasdaq: JAZZ) today announced financial results for the third quarter of 2026 (3Q26).
"Our third-quarter performance reflects sustained execution across the business and gives us confidence to raise our full-year total revenue guidance," said Renee Gala, president and chief executive officer of Jazz Pharmaceuticals. "At the same time, we continue to strengthen the drivers of our future growth, with the approval and rapid launch of Ziihera in first-line HER2-positive GEA and the acquisition of Actio, which adds ABS-1230 and deepens our pipeline in rare, refractory epilepsies. Jazz is moving with momentum and urgency to advance practice-changing medicines that deliver meaningful benefit for patients and durable value for shareholders."
Recent Key Highlights
•Achieved total revenues of $1.2 billion in 3Q26, reflecting 10% year-over-year (YoY) growth.
•Received U.S. Food and Drug Administration (FDA) approval and rapidly launched Ziihera-based combinations in first-line (1L) gastroesophageal adenocarcinoma (GEA).
•Presented final analysis from the HERIZON-GEA-01 trial at European Society for Medical Oncology Congress 2026 (ESMO), demonstrating sustained survival benefit at three years. Longer follow up of Ziihera plus tislelizumab and chemotherapy showed an improved overall survival (OS) hazard ratio of 0.65, further supporting Ziihera-based combinations as standard-of-care.
•Closed acquisition of Actio Biosciences, Inc. (Actio), adding ABS-1230 (JZP6979) to rare epilepsy portfolio.
•Generated $1.3 billion in cash from operations in the first nine months of 2026.
•Raised 2026 total revenue guidance to a range of $4.775 - $4.85 billion.
Business Updates
Xywav (calcium, magnesium, potassium, and sodium oxybates) oral solution:
•Xywav net product sales increased 12% YoY to $483 million in 3Q26.
•Robust new patient growth drove revenue, with approximately 425 net patient adds in 3Q26. There were approximately 17,550 active patients exiting the quarter, comprised of approximately 11,375 narcolepsy patients and approximately 6,175 idiopathic hypersomnia patients.
•Continued physician and patient demand for the differentiated benefits of low-sodium Xywav.
1
Epidiolex/Epidyolex® (cannabidiol):
•Epidiolex/Epidyolex net product sales decreased 2% YoY to $295 million in 3Q26. The 3Q26 growth rate was negatively affected by lower U.S. gross-to-net deductions in 3Q25 and lower levels of inventory build in 3Q26 due to wholesaler buying patterns.
•The PDUFA target action date for our New Drug Application (NDA) for the oral cannabidiol capsule formulation is April 16, 2027.
Ziihera (zanidatamab-hrii):
•Ziihera net product sales were $21 million in 3Q26.
•Ziihera received FDA approval on August 25, 2026, and was launched promptly for the first-line treatment of adult patients with HER2-positive (HER2+) unresectable locally advanced or metastatic GEA.
•Promising early demand from first full month of 1L GEA launch with ~40% increase in average demand vials per selling day and a threefold increase in new ordering accounts, 80% of which are community based.
•Positive results from the second and final OS analysis for the HERIZON-GEA-01 trial were presented at ESMO. Mature HERIZON-GEA-01 results showed Ziihera plus chemotherapy delivered statistically significant and clinically meaningful OS benefit. Nearly 40% of patients were alive at three years with Ziihera plus tislelizumab and chemotherapy, irrespective of PD-L1 status, achieving a median OS of 27 months.
•NCCN Clinical Practice Guidelines in Oncology® (NCCN Guidelines®) for Gastric Cancer, and Esophageal and Esophagogastric Junction Cancers, were updated to include Ziihera (zanidatamab-hrii) in combination with chemotherapy, with and without Tevimbra® (tislelizumab-jsgr), as a preferred regimen for first-line treatment of adult patients with HER2+ unresectable locally advanced or metastatic GEA.
Modeyso™ (dordaviprone):
•Modeyso net product sales were $61 million in 3Q26 with approximately 725 patients having received Modeyso from product launch in August 2025 through the end of 3Q26.
•The company anticipates the OS interim analysis for the event-driven Phase 3 ACTION trial in 1H27, based on the current pace of event accrual.
Zepzelca® (lurbinectedin):
•Zepzelca net product sales increased 32% YoY to $104 million in 3Q26, driven by continued uptake of the Zepzelca and atezolizumab combination in the 1L maintenance extensive-stage small-cell lung cancer setting, partially offset by a decline in second-line use.
•On September 30, 2026, the FDA approved the label supplement removing the second-line indication.
Actio Acquisition:
•Completed the Actio acquisition in September 2026, adding ABS-1230 (JZP6979) to rare epilepsy portfolio.
•Potential first-in-class precision therapy for KCNT1-related epilepsy which has demonstrated meaningful seizure reductions in an early clinical proof-of-concept trial in children with KCNT1 epilepsy.
•Currently being evaluated in the ongoing Phase 1b/2a KYRON trial designed to serve as a registrational study to support an NDA submission in the U.S.
•Expect to present initial patient data at a medical meeting in 4Q26.
2
Capital Structure
In the third quarter of 2026, the company completed a private placement of $1.25 billion aggregate principal amount of 1.875% exchangeable senior notes due 2032 (2032 notes). Concurrent with this transaction, the company repurchased $225 million of its ordinary shares. The company paid for the repurchases with existing cash on hand, and the share repurchases were effected under, and completely exhausted, the company’s share repurchase program announced in July 2024. In October 2026, the board of directors approved a new share repurchase program with no expiration date pursuant to which the company may repurchase its ordinary shares for up to an aggregate purchase price of $500 million, exclusive of any brokerage commissions.
Additionally, in the third quarter, the company amended and extended the company's Term Loan B, reducing the applicable margin by 50 basis points and extending the maturity by five years to May 2033, which is expected to generate cash interest savings and maintain cash reserves.
Financial Highlights
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (In millions, except per share amounts) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Total revenues | $ | 1,243.0 | $ | 1,126.1 | $ | 3,520.2 | $ | 3,069.6 | |||||||||||||||
| GAAP net income (loss) | $ | (483.4) | $ | 251.4 | $ | 2.5 | $ | (559.6) | |||||||||||||||
| Non-GAAP adjusted net income (loss) | $ | (250.8) | $ | 500.7 | $ | 565.1 | $ | 101.0 | |||||||||||||||
| GAAP earnings (loss) per share | $ | (7.48) | $ | 4.08 | $ | 0.04 | $ | (9.18) | |||||||||||||||
| Non-GAAP adjusted earnings (loss) per share | $ | (3.88) | $ | 8.13 | $ | 8.23 | $ | 1.63 | |||||||||||||||
GAAP net loss and non-GAAP adjusted net loss in 3Q26 included acquired in-process research and development (IPR&D) expense of $754 million representing the value allocated to ABS-1230 (JZP6979) in the Actio acquisition, which impacted our results by $11.32 per share and $11.03 per share on a GAAP and non-GAAP adjusted basis, respectively.
Reconciliations of applicable GAAP reported to non-GAAP adjusted information are included at the end of this press release.
3
Total Revenues
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (In millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Xywav | $ | 482.8 | $ | 431.4 | $ | 1,362.2 | $ | 1,191.5 | |||||||||||||||
| Xyrem | 31.2 | 35.7 | 92.9 | 108.3 | |||||||||||||||||||
| Sleep | 514.0 | 467.1 | 1,455.1 | 1,299.8 | |||||||||||||||||||
| Epidiolex/Epidyolex | 295.4 | 302.6 | 837.3 | 772.0 | |||||||||||||||||||
| Epilepsy | 295.4 | 302.6 | 837.3 | 772.0 | |||||||||||||||||||
| Zepzelca | 104.4 | 79.3 | 311.2 | 216.8 | |||||||||||||||||||
| Rylaze/Enrylaze | 106.3 | 99.9 | 309.5 | 294.8 | |||||||||||||||||||
| Defitelio/defibrotide | 60.7 | 51.7 | 170.1 | 140.5 | |||||||||||||||||||
| Modeyso | 61.1 | 11.0 | 150.7 | 11.5 | |||||||||||||||||||
| Vyxeos | 34.0 | 37.6 | 92.0 | 112.0 | |||||||||||||||||||
| Ziihera | 20.6 | 8.3 | 49.3 | 16.3 | |||||||||||||||||||
| Oncology | 387.1 | 287.8 | 1,082.8 | 791.9 | |||||||||||||||||||
| Other | — | 6.9 | 2.7 | 25.7 | |||||||||||||||||||
| Product sales, net | 1,196.5 | 1,064.4 | 3,377.9 | 2,889.4 | |||||||||||||||||||
| High-sodium oxybate AG royalty revenue | 38.4 | 52.9 | 116.9 | 155.9 | |||||||||||||||||||
| Other royalty and contract revenues | 8.1 | 8.8 | 25.4 | 24.3 | |||||||||||||||||||
| Total revenues | $ | 1,243.0 | $ | 1,126.1 | $ | 3,520.2 | $ | 3,069.6 | |||||||||||||||
Total revenues increased 10% YoY in 3Q26 primarily due to higher Xywav, Zepzelca and Ziihera net product sales and the inclusion of Modeyso net product sales, following FDA approval in August 2025.
Operating Expenses and Income Tax Expense (Benefit)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (In millions, except percentages) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| GAAP: | |||||||||||||||||||||||
| Cost of product sales | $ | 110.6 | $ | 128.9 | $ | 361.1 | $ | 349.8 | |||||||||||||||
| Gross margin on total revenues | 91.1% | 88.6% | 89.7% | 88.6% | |||||||||||||||||||
| Selling, general and administrative | $ | 407.9 | $ | 530.6 | $ | 1,149.8 | $ | 1,403.0 | |||||||||||||||
| % of total revenues | 32.8% | 47.1% | 32.7% | 45.7% | |||||||||||||||||||
| Research and development | $ | 211.9 | $ | 198.2 | $ | 615.4 | $ | 568.8 | |||||||||||||||
| % of total revenues | 17.0% | 17.6% | 17.5% | 18.5% | |||||||||||||||||||
| Acquired in-process research and development | $ | 754.2 | $ | 42.5 | $ | 831.2 | $ | 947.9 | |||||||||||||||
| Gain on sale of priority review voucher | $ | — | $ | — | $ | (122.8) | $ | — | |||||||||||||||
| Income tax expense (benefit) | $ | 24.5 | $ | (242.4) | $ | 48.7 | $ | (277.4) | |||||||||||||||
| Effective tax rate | (5.3)% | N/A(1) | 94.9% | 33.2% | |||||||||||||||||||
_________________________
1.Not a meaningful metric due to minimal profit before tax in this period.
4
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (In millions, except percentages) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Non-GAAP adjusted: | |||||||||||||||||||||||
| Cost of product sales | $ | 105.1 | $ | 83.2 | $ | 290.2 | $ | 229.2 | |||||||||||||||
| Gross margin on total revenues | 91.5% | 92.6% | 91.8% | 92.5% | |||||||||||||||||||
| Selling, general and administrative | $ | 328.0 | $ | 460.1 | $ | 979.7 | $ | 1,242.7 | |||||||||||||||
| % of total revenues | 26.4% | 40.9% | 27.8% | 40.5% | |||||||||||||||||||
| Research and development | $ | 188.9 | $ | 169.9 | $ | 546.1 | $ | 496.7 | |||||||||||||||
| % of total revenues | 15.2% | 15.1% | 15.5% | 16.2% | |||||||||||||||||||
| Acquired in-process research and development | $ | 754.2 | $ | 42.5 | $ | 831.2 | $ | 947.9 | |||||||||||||||
| Income tax expense (benefit) | $ | 72.1 | $ | (178.8) | $ | 187.7 | $ | (100.1) | |||||||||||||||
| Effective tax rate | (40.3)% | (55.5)% | 24.9% | N/A(1) | |||||||||||||||||||
_________________________
1.Not a meaningful metric due to minimal profit before tax in this period.
Changes in operating expenses and income tax expense (benefit) in 3Q26 over the prior year period are primarily due to the following:
•Cost of product sales, on a GAAP basis, decreased in 3Q26, primarily due to the full recognition of the inventory fair value step-up in the second quarter of 2026, partially offset by higher royalty expenses, driven by higher revenues of Modeyso and Zepzelca. Cost of product sales, on a non-GAAP adjusted basis, increased in 3Q26, primarily due to the higher royalty expenses.
•Selling, general and administrative (SG&A) expenses, on a GAAP and non-GAAP adjusted basis, decreased in 3Q26, primarily due to litigation settlements of $152 million in 3Q25, partially offset, on a GAAP basis, by restructuring expenses of $34 million included in 3Q26.
•Research and development (R&D) expenses, on a GAAP and non-GAAP adjusted basis, increased in 3Q26, reflecting continued investment in our pipeline portfolio and evidence generation.
•Acquired IPR&D of $754 million, on a GAAP and non-GAAP adjusted basis, in 3Q26, represents the value allocated to ABS-1230 (JZP6979) in the Actio acquisition.
•We recognized an income tax expense, on a GAAP and non-GAAP adjusted basis, in 3Q26 compared to an income tax benefit in 3Q25, which included a benefit of $206 million on recognition of certain U.S. federal and state deferred tax assets acquired through our acquisition of Chimerix.
Cash Flow and Balance Sheet
As of September 30, 2026, cash, cash equivalents and investments were $2.9 billion, and the outstanding principal balance of the company’s long-term debt was $5.6 billion. In addition, the company had undrawn borrowing capacity under a revolving credit facility of $885 million. For the nine months ended September 30, 2026, the company generated $1.3 billion of cash from operations reflecting strong business performance and continued financial discipline.
5
2026 Financial Guidance
Jazz Pharmaceuticals has updated its full-year financial guidance, as shown in the table below, including raising its full-year 2026 revenue guidance, increasing its GAAP SG&A expense guidance to include restructuring expenses, and updating its effective tax rate guidance range to reflect the impact of the acquired IPR&D expense associated with the Actio acquisition.
| Guidance provided as of | |||||||||||
| (In millions) | November 2, 2026 | August 3, 2026 | |||||||||
| Total Revenues | $4,775 - $4,850 | $4,600 - $4,750 | |||||||||
GAAP:
| (In millions, except percentages) | November 2, 2026 | August 3, 2026 | |||||||||
| Gross margin % | 89% - 90% | 89% - 90% | |||||||||
| SG&A expenses | $1,544 - $1,597 | $1,506 - $1,556 | |||||||||
| R&D expenses | $819 - $876 | $818 - $873 | |||||||||
| Effective tax rate | 20% - 30% | 0% - 10% | |||||||||
| Weighted-average diluted shares outstanding | 69 - 70 | 69 - 70 | |||||||||
Non-GAAP adjusted:
| (In millions, except percentages) | November 2, 2026 | August 3, 2026 | |||||||||
| Gross margin % | 90.5% - 91.5%1 | 90% - 91% | |||||||||
| SG&A expenses | $1,330 - $1,3701 | $1,330 - $1,370 | |||||||||
| R&D expenses | $725 - $7751 | $725 - $775 | |||||||||
| Effective tax rate | 19.5% - 21.5%1 | 11.5% - 13.5% | |||||||||
| Weighted-average diluted shares outstanding | 69 - 70 | 69 - 70 | |||||||||
___________________________
1.See "Non-GAAP Financial Measures" below. Reconciliations of non-GAAP adjusted guidance measures are included in the table titled "Reconciliation of 2026 GAAP to Non-GAAP Guidance Measures."
Conference Call Details
Jazz Pharmaceuticals will host an investor conference call and live audio webcast today at 4:30 p.m. ET to provide a business and financial update and discuss its 2026 third quarter results.
Interested parties may register for the call here or via the Investors section of the Jazz Pharmaceuticals website at www.jazzpharmaceuticals.com. To ensure a timely connection, it is recommended that participants register at least 15 minutes prior to the scheduled webcast.
A replay of the webcast will be available via the Investors section of the Jazz Pharmaceuticals website at www.jazzpharmaceuticals.com.
About Jazz Pharmaceuticals
Jazz Pharmaceuticals plc (NASDAQ: JAZZ) is a global biopharma company whose purpose is to innovate to transform the lives of patients and their families. We are dedicated to developing life-changing medicines for people with rare disease — often with limited or no therapeutic options. We have a diverse portfolio of medicines, including leading therapies addressing epilepsies, cancers and sleep disorders. Our patient-focused and science-driven approach powers pioneering research and development advancements across our robust pipeline of innovative therapeutics. Jazz is headquartered in Dublin, Ireland with research and development laboratories, manufacturing facilities and employees in multiple countries committed to serving patients worldwide. Please visit www.jazzpharmaceuticals.com for more information.
6
Non-GAAP Financial Measures
To supplement Jazz Pharmaceuticals’ financial results and guidance presented in accordance with U.S. generally accepted accounting principles (GAAP), the company uses certain non-GAAP (also referred to as adjusted or non-GAAP adjusted) financial measures in this press release that exclude certain items that are included in the most directly comparable GAAP financial measures, as detailed in the accompanying tables. The company believes that each of these non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors and analysts and that each of these non-GAAP financial measures, when considered together with the company’s financial information prepared in accordance with GAAP, can enhance investors’ and analysts’ ability to meaningfully compare the company’s results from period to period, to its forward-looking guidance, and to identify operating trends in the company’s business. In addition, these non-GAAP financial measures are regularly used by investors and analysts to model and track the company’s financial performance. Jazz Pharmaceuticals’ management also regularly uses these non-GAAP financial measures internally to understand, manage and evaluate the company’s business and to make operating decisions, and compensation of executives is based in part on certain of these non-GAAP financial measures. These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures; should be read in conjunction with the company’s consolidated financial statements prepared in accordance with GAAP; have no standardized meaning prescribed by GAAP; and are not prepared under any comprehensive set of accounting rules or principles in the reconciliation tables that follow. Because of the non-standardized definitions of non-GAAP financial measures, the non-GAAP financial measures as used by Jazz Pharmaceuticals in this press release and the accompanying tables have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies.
Cautionary Note Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including, but not limited to, statements related to: the company’s growth prospects and future financial and operating results, including the company’s 2026 financial guidance and the company’s expectations related thereto, including with respect to anticipated catalysts; the company’s advancement of pipeline programs and the timing of development activities, regulatory activities, approvals, and submissions related thereto; the prospective benefits of the company’s acquisition of Actio and the potential of ABS-1230 (now JZP6979) for the treatment of KCNT1-related epilepsy; the company’s expectations with respect to its regulatory submissions, including its NDA for a cannabidiol oral capsule formulation for potential use in existing approved Epidiolex/Epidyolex formulations and its NDA for JZP6979 in KCNT1-related epilepsy; and the company’s development, regulatory and commercialization strategy, including the company’s expectation of portfolio expansion through business development and its research and development engine; the company’s expectations with respect to its products and product candidates and the potential of the company’s products and product candidates and the potential regulatory path related thereto; the company’s capital allocation and corporate development strategy; the commercial potential of the company's products; the company’s views and expectations relating to its patent portfolio; and other statements that are not historical facts. These forward-looking statements are based on the company’s current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties.
Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties associated with: maintaining or increasing sales of, and revenue from, Xywav, Epidiolex/Epidyolex, Ziihera, Modeyso, Zepzelca and other lead marketed products; effectively launching and commercializing the company’s other products and product candidates; the successful completion of development and regulatory activities with respect to the company’s product candidates; obtaining and maintaining adequate coverage and reimbursement for the company’s products; the time-consuming and
7
uncertain regulatory approval process; the costly and time-consuming pharmaceutical product development process and the uncertainty of clinical success; global economic, financial, and healthcare system disruptions; protecting and enhancing the company’s intellectual property rights and the company’s commercial success being dependent upon the company obtaining, maintaining and defending intellectual property protection and exclusivity for its products and product candidates; delays or problems in the supply or manufacture of the company’s products and product candidates; the company’s ability to realize the anticipated benefits from its acquisition of Actio; complying with applicable U.S. and non-U.S. regulatory requirements; government investigations, legal proceedings and other actions; identifying and consummating corporate development transactions, financing these transactions and successfully integrating acquired products, product candidates and businesses; the company’s ability to realize the anticipated benefits of its collaborations and license agreements with third parties; the sufficiency of the company’s cash flows and capital resources; the company’s ability to achieve targeted or expected future financial performance and results and the uncertainty of future tax, accounting and other provisions and estimates; the company’s ability to meet its projected long-term goals and objectives, in the time periods that the company anticipates, or at all, and the inherent uncertainty and significant judgments and assumptions underlying the company’s long-term goals and objectives; fluctuations in the market price and trading volume of the company's ordinary shares; and other risks and uncertainties affecting the company, including those described from time to time under the caption “Risk Factors” and elsewhere in the company’s Securities and Exchange Commission filings and reports, including the company's Annual Report on Form 10-K for the year ended December 31, 2025, Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 and future filings and reports by the company. Other risks and uncertainties of which the company is not currently aware may also affect the company's forward-looking statements and may cause actual results and the timing of events to differ materially from those anticipated.
8
JAZZ PHARMACEUTICALS PLC
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(In millions, except per share amounts)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Product sales, net | $ | 1,196.5 | $ | 1,064.4 | $ | 3,377.9 | $ | 2,889.4 | |||||||||||||||
| Royalties and contract revenues | 46.5 | 61.7 | 142.3 | 180.2 | |||||||||||||||||||
| Total revenues | 1,243.0 | 1,126.1 | 3,520.2 | 3,069.6 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Cost of product sales (excluding amortization of acquired developed technologies) | 110.6 | 128.9 | 361.1 | 349.8 | |||||||||||||||||||
| Selling, general and administrative | 407.9 | 530.6 | 1,149.8 | 1,403.0 | |||||||||||||||||||
| Research and development | 211.9 | 198.2 | 615.4 | 568.8 | |||||||||||||||||||
| Intangible asset amortization | 171.8 | 168.4 | 514.1 | 484.9 | |||||||||||||||||||
| Acquired in-process research and development | 754.2 | 42.5 | 831.2 | 947.9 | |||||||||||||||||||
| Gain on sale of priority review voucher | — | — | (122.8) | — | |||||||||||||||||||
| Total operating expenses | 1,656.4 | 1,068.6 | 3,348.8 | 3,754.4 | |||||||||||||||||||
| Income (loss) from operations | (413.4) | 57.5 | 171.4 | (684.8) | |||||||||||||||||||
| Interest expense, net | (45.5) | (48.6) | (122.5) | (149.7) | |||||||||||||||||||
| Foreign exchange gain (loss) | — | 0.1 | 2.4 | (1.9) | |||||||||||||||||||
| Income (loss) before income tax expense (benefit) and equity in loss of investees | (458.9) | 9.0 | 51.3 | (836.4) | |||||||||||||||||||
| Income tax expense (benefit) | 24.5 | (242.4) | 48.7 | (277.4) | |||||||||||||||||||
| Equity in loss of investees | — | — | 0.1 | 0.6 | |||||||||||||||||||
| Net income (loss) | $ | (483.4) | $ | 251.4 | $ | 2.5 | $ | (559.6) | |||||||||||||||
| Net income (loss) per ordinary share: | |||||||||||||||||||||||
| Basic | $ | (7.48) | $ | 4.14 | $ | 0.04 | $ | (9.18) | |||||||||||||||
| Diluted | $ | (7.48) | $ | 4.08 | $ | 0.04 | $ | (9.18) | |||||||||||||||
| Weighted-average ordinary shares used in per share calculations - basic | 64.7 | 60.7 | 63.3 | 61.0 | |||||||||||||||||||
| Weighted-average ordinary shares used in per share calculations - diluted | 64.7 | 61.6 | 68.6 | 61.0 | |||||||||||||||||||
9
JAZZ PHARMACEUTICALS PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
| September 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 2,036.4 | $ | 1,391.9 | |||||||
| Investments | 820.0 | 1,050.0 | |||||||||
| Accounts receivable, net of allowances | 873.7 | 830.7 | |||||||||
| Inventories | 454.0 | 417.0 | |||||||||
| Prepaid expenses | 170.9 | 152.5 | |||||||||
| Other current assets | 258.4 | 323.9 | |||||||||
| Total current assets | 4,613.4 | 4,166.0 | |||||||||
| Property, plant and equipment, net | 224.8 | 199.9 | |||||||||
| Operating lease assets | 67.2 | 58.9 | |||||||||
| Intangible assets, net | 4,173.7 | 4,429.5 | |||||||||
| Goodwill | 1,802.8 | 1,829.3 | |||||||||
| Deferred tax assets, net | 998.7 | 869.1 | |||||||||
| Deferred financing costs | 6.1 | 7.6 | |||||||||
| Other non-current assets | 111.0 | 99.0 | |||||||||
| Total assets | $ | 11,997.7 | $ | 11,659.3 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 380.3 | $ | 122.1 | |||||||
| Accrued liabilities | 1,076.4 | 1,034.2 | |||||||||
| Current portion of long-term debt | 1,017.3 | 1,029.9 | |||||||||
| Income taxes payable | 59.2 | 56.3 | |||||||||
| Total current liabilities | 2,533.2 | 2,242.5 | |||||||||
| Long-term debt, less current portion | 4,552.1 | 4,328.4 | |||||||||
| Operating lease liabilities, less current portion | 60.7 | 50.9 | |||||||||
| Deferred tax liabilities, net | 506.1 | 594.5 | |||||||||
| Other non-current liabilities | 153.8 | 124.4 | |||||||||
| Total shareholders’ equity | 4,191.8 | 4,318.6 | |||||||||
| Total liabilities and shareholders’ equity | $ | 11,997.7 | $ | 11,659.3 | |||||||
JAZZ PHARMACEUTICALS PLC
SUMMARY OF CASH FLOWS
(In millions)
(Unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash provided by operating activities | $ | 1,330.0 | $ | 993.3 | |||||||
| Net cash used in investing activities | (605.8) | (1,137.8) | |||||||||
| Net cash used in financing activities | (79.3) | (948.8) | |||||||||
| Effect of exchange rates on cash and cash equivalents | (0.4) | 6.5 | |||||||||
| Net increase (decrease) in cash and cash equivalents | $ | 644.5 | $ | (1,086.8) | |||||||
10
JAZZ PHARMACEUTICALS PLC
RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
(In millions, except per share amounts)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Net Loss | Diluted Loss Per Share (LPS) | Net Income | Diluted Earnings Per Share (EPS) | Net Income | Diluted EPS | Net Income (Loss) | Diluted EPS / (LPS) | ||||||||||||||||||||||||||||||||||||||||
| GAAP reported | $ | (483.4) | $ | (7.48) | $ | 251.4 | $ | 4.08 | $ | 2.5 | $ | 0.04 | $ | (559.6) | $ | (9.18) | |||||||||||||||||||||||||||||||
| Intangible asset amortization | 171.8 | 2.66 | 168.4 | 2.73 | 514.1 | 7.49 | 484.9 | 7.83 | |||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | 73.8 | 1.14 | 88.1 | 1.43 | 221.6 | 3.23 | 220.3 | 3.56 | |||||||||||||||||||||||||||||||||||||||
| Acquisition accounting inventory fair value step-up | — | — | 40.4 | 0.66 | 54.1 | 0.79 | 107.3 | 1.73 | |||||||||||||||||||||||||||||||||||||||
| Restructuring and other costs | 34.2 | 0.53 | — | — | 34.2 | 0.50 | — | — | |||||||||||||||||||||||||||||||||||||||
| Gain on sale of PRV | — | — | — | — | (122.8) | (1.79) | — | — | |||||||||||||||||||||||||||||||||||||||
Integration related expenses1 | 0.4 | 0.01 | 16.0 | 0.26 | 0.4 | 0.01 | 25.4 | 0.41 | |||||||||||||||||||||||||||||||||||||||
| Income tax effect of above adjustments | (47.6) | (0.74) | (63.6) | (1.03) | (139.0) | (2.04) | (177.3) | (2.86) | |||||||||||||||||||||||||||||||||||||||
| Effect of potentially dilutive ordinary shares on non-GAAP adjusted EPS | — | — | — | — | — | — | — | 0.14 | |||||||||||||||||||||||||||||||||||||||
| Non-GAAP adjusted | $ | (250.8) | $ | (3.88) | $ | 500.7 | $ | 8.13 | $ | 565.1 | $ | 8.23 | $ | 101.0 | $ | 1.63 | |||||||||||||||||||||||||||||||
| Weighted-average ordinary shares used in diluted per share calculations - GAAP | 64.7 | 61.6 | 68.6 | 61.0 | |||||||||||||||||||||||||||||||||||||||||||
| Dilutive effect of employee equity incentive and purchase plans | — | — | — | 0.9 | |||||||||||||||||||||||||||||||||||||||||||
| Weighted-average ordinary shares used in diluted per share calculations - GAAP and non-GAAP | 64.7 | 61.6 | 68.6 | 61.9 | |||||||||||||||||||||||||||||||||||||||||||
________________________________________________
1.Integration related expenses with respect to the Actio acquisition and the Chimerix acquisition.
11
JAZZ PHARMACEUTICALS PLC
RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION - CERTAIN LINE ITEMS
(In millions, except percentages)
(Unaudited)
| Three months ended September 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of product sales | Gross margin | SG&A | R&D | Intangible asset amortization | Acquired IPR&D | Interest expense, net | Income tax expense | Effective tax rate | |||||||||||||||||||||||||||||||||||||||||||||
| GAAP Reported | $ | 110.6 | 91.1 | % | $ | 407.9 | $ | 211.9 | $ | 171.8 | $ | 754.2 | $ | 45.5 | $ | 24.5 | (5.3) | % | |||||||||||||||||||||||||||||||||||
| Non-GAAP Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intangible asset amortization | — | — | — | — | (171.8) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | (5.5) | 0.4 | (45.4) | (22.9) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and other costs | — | — | (34.2) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Integration related expenses | — | — | (0.3) | (0.1) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Income tax effect of above adjustments | — | — | — | — | — | — | — | 47.6 | (35.0) | ||||||||||||||||||||||||||||||||||||||||||||
| Total of non-GAAP adjustments | (5.5) | 0.4 | (79.9) | (23.0) | (171.8) | — | — | 47.6 | (35.0) | ||||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | 105.1 | 91.5 | % | $ | 328.0 | $ | 188.9 | $ | — | $ | 754.2 | $ | 45.5 | $ | 72.1 | (40.3) | % | |||||||||||||||||||||||||||||||||||
| Three months ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of product sales | Gross margin | SG&A | R&D | Intangible asset amortization | Acquired IPR&D | Interest expense, net | Income tax benefit | Effective tax rate | |||||||||||||||||||||||||||||||||||||||||||||
| GAAP Reported | $ | 128.9 | 88.6 | % | $ | 530.6 | $ | 198.2 | $ | 168.4 | $ | 42.5 | $ | 48.6 | $ | (242.4) | N/A(1) | ||||||||||||||||||||||||||||||||||||
| Non-GAAP Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intangible asset amortization | — | — | — | — | (168.4) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | (5.0) | 0.4 | (61.3) | (21.8) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Integration related expenses | (0.3) | — | (9.2) | (6.5) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Acquisition accounting inventory fair value step-up | (40.4) | 3.6 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Income tax effect of above adjustments | — | — | — | — | — | — | — | 63.6 | N/A(1) | ||||||||||||||||||||||||||||||||||||||||||||
| Total of non-GAAP adjustments | (45.7) | 4.0 | (70.5) | (28.3) | (168.4) | — | — | 63.6 | N/A(1) | ||||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | 83.2 | 92.6 | % | $ | 460.1 | $ | 169.9 | $ | — | $ | 42.5 | $ | 48.6 | $ | (178.8) | (55.5) | % | |||||||||||||||||||||||||||||||||||
_________________________
1.Not a meaningful metric due to minimal GAAP profit before tax in this period.
12
JAZZ PHARMACEUTICALS PLC
RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION - CERTAIN LINE ITEMS
(In millions, except percentages)
(Unaudited)
| Nine months ended September 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of product sales | Gross margin | SG&A | R&D | Intangible asset amortization | Gain on sale of PRV | Acquired IPR&D | Interest expense, net | Income tax expense | Effective tax rate | ||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP Reported | $ | 361.1 | 89.7 | % | $ | 1,149.8 | $ | 615.4 | $ | 514.1 | $ | (122.8) | $ | 831.2 | $ | 122.5 | $ | 48.7 | 94.9 | % | |||||||||||||||||||||||||||||||||||||||
| Non-GAAP Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intangible asset amortization | — | — | — | — | (514.1) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | (16.8) | 0.5 | (135.6) | (69.2) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition accounting inventory fair value step-up | (54.1) | 1.6 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and other costs | — | — | (34.2) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Integration related expenses | — | — | (0.3) | (0.1) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on sale of PRV | — | — | — | — | — | 122.8 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax effect of above adjustments | — | — | — | — | — | — | — | — | 139.0 | (70.0) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total of non-GAAP adjustments | (70.9) | 2.1 | (170.1) | (69.3) | (514.1) | 122.8 | — | — | 139.0 | (70.0) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | 290.2 | 91.8 | % | $ | 979.7 | $ | 546.1 | $ | — | $ | — | $ | 831.2 | $ | 122.5 | $ | 187.7 | 24.9 | % | |||||||||||||||||||||||||||||||||||||||
| Nine months ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of product sales | Gross margin | SG&A | R&D | Intangible asset amortization | Acquired IPR&D | Interest expense, net | Income tax benefit | Effective tax rate | |||||||||||||||||||||||||||||||||||||||||||||
| GAAP Reported | $ | 349.8 | 88.6 | % | $ | 1,403.0 | $ | 568.8 | $ | 484.9 | $ | 947.9 | $ | 149.7 | $ | (277.4) | 33.2 | % | |||||||||||||||||||||||||||||||||||
| Non-GAAP Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intangible asset amortization | — | — | — | — | (484.9) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | (13.0) | 0.4 | (144.0) | (63.3) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Integration related expenses | (0.3) | — | (16.3) | (8.8) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Acquisition accounting inventory fair value step-up | (107.3) | 3.5 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Income tax effect of above adjustments | — | — | — | — | — | — | — | 177.3 | N/A(1) | ||||||||||||||||||||||||||||||||||||||||||||
| Total of non-GAAP adjustments | (120.6) | 3.9 | (160.3) | (72.1) | (484.9) | — | — | 177.3 | N/A(1) | ||||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | 229.2 | 92.5 | % | $ | 1,242.7 | $ | 496.7 | $ | — | $ | 947.9 | $ | 149.7 | $ | (100.1) | N/A(1) | ||||||||||||||||||||||||||||||||||||
_________________________
1.Not a meaningful metric due to minimal non-GAAP profit before tax in this period.
13
JAZZ PHARMACEUTICALS PLC
RECONCILIATION OF 2026 GAAP TO NON-GAAP GUIDANCE MEASURES
| Projected Range | |||||||||||
| (In millions, except percentages) | Low | High | |||||||||
| GAAP gross margin on total revenues | 89% | 90% | |||||||||
| Acquisition accounting inventory fair value step-up | 1% | 1% | |||||||||
| Share-based compensation expense | 0.5% | 0.5% | |||||||||
| Non-GAAP gross margin on total revenues | 90.5% | 91.5% | |||||||||
| GAAP SG&A expenses | $ | 1,544 | $ | 1,597 | |||||||
| Share-based compensation expense | (176) | (186) | |||||||||
| Restructuring and other costs | (34) | (34) | |||||||||
| Integration related expenses | (4) | (7) | |||||||||
| Non-GAAP SG&A expenses | $ | 1,330 | $ | 1,370 | |||||||
| GAAP R&D expenses | $ | 819 | $ | 876 | |||||||
| Share-based compensation expense | (93) | (98) | |||||||||
| Integration related expenses | (1) | (3) | |||||||||
| Non-GAAP R&D expenses | $ | 725 | $ | 775 | |||||||
| GAAP effective tax rate | 20% | 30% | |||||||||
| Income tax effect of GAAP to non-GAAP reconciling items | (0.5)% | (8.5)% | |||||||||
| Non-GAAP effective tax rate | 19.5% | 21.5% | |||||||||
Contacts:
Investors:
InvestorInfo@jazzpharma.com
Ireland +353 1 634 7800
U.S. +1 650 496 2717
Media:
CorporateAffairsMediaInfo@jazzpharma.com
Ireland +353 1 637 2141
U.S. +1 215 867 4948
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